Real Estate Tax Implications in Dayton: The Complete Guide for Homeowners & Investors
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Selling a home in Dayton can be stressful enough — and unexpected tax bills at closing make it even more complicated. From the Ohio conveyance fee to property tax prorations, federal capital gains, school district income taxes, and special programs like the Homestead Exemption or CAUV, there’s a lot to navigate. This guide explains everything in plain English so you can sell confidently, whether you’re moving out of your Oakwood home, selling a rental in Kettering, or handling an inherited property in Beavercreek.
Key Takeaways
- Dayton properties are subject to real property conveyance fees — $1 per $1,000 at the state level, plus an additional Montgomery County permissive fee up to $3 per $1,000.
- Federal capital gains rules apply to Ohio sellers: up to $250,000/$500,000 exclusion on primary residences if the 2-out-of-5-year ownership/use test is met.
- Ohio taxes capital gains as ordinary income, with some school districts levying SDIT that may include capital gains.
- Property tax credits/exemptions like Homestead, Owner-Occupancy (2.5%), and Non-Business credits impact prorations and net proceeds.
- CAUV recoupment applies to agricultural properties if the land use changes post-sale.
Why Dayton Real Estate Taxes Can Be Tricky
Dayton sits in Montgomery County, but nearby sales often involve Greene, Miami, Warren, or Clark Counties. Each county sets its own conveyance fee, administers property tax prorations, and interacts with local school district taxes differently. Factor in federal capital gains, rental depreciation recapture, and local exemptions, and you can see why closings get complicated. The key is a step-by-step checklist: confirm all taxes/fees, check exemptions, verify prorations, and price your sale with these in mind.
Taxes & Fees When Selling in Dayton
| Item | Who Charges It | When It Applies | How It’s Calculated | Notes |
|---|---|---|---|---|
| Conveyance Fee (Transfer Tax) | State & County | Most transfers | State: $1 per $1,000; Montgomery County: up to $3 per $1,000 | Paid with DTE Form 100 at county auditor; total depends on county. |
| Property Tax Proration | County Treasurer | At closing | Daily pro-rata for current half-year | Ohio bills semiannually; prorations repay buyer for pre-closing taxes. |
| Federal Capital Gains | IRS | On net gain | Gain = Sale price – Adjusted basis – Selling costs | Primary home exclusion up to $250k/$500k; rentals trigger depreciation recapture. |
| Ohio State Income Tax | Ohio Dept. of Taxation | On Ohio taxable income | Capital gains taxed as ordinary income | May also affect SDIT depending on district. |
| School District Income Tax (SDIT) | District (via ODT) | If levied by district | Traditional base includes Ohio taxable income; earned-income base excludes capital gains | Check your district’s base for accurate calculations. |
| Homestead Exemption | County Auditor | 65+/disabled, income-based | Reduces taxable value (e.g., $28,000 reduction in Montgomery Co.) | Affects bill/prorations, not federal gains. |
| Owner-Occupancy (2.5%) & Non-Business Credits | County/ODT | Primary residence | Reduces certain levy charges | Impacts escrow/prorations; see county auditor or ODT sheets. |
| CAUV Recoupment | County Auditor | If agricultural use changes | Difference between CAUV & market value from prior years | Confirm with auditor for farm property sales. |
Dayton Conveyance Fee Explained
State fee: $1 per $1,000 of sale price. Montgomery County allows up to $3 per $1,000 additional. File DTE Form 100 at transfer. Example: $250,000 home in Montgomery County with full permissive fee → approx $1,000 total conveyance fee.
| County | State Fee | County Fee | Total per $1,000 | Notes |
|---|---|---|---|---|
| Montgomery County | $1.00 | Up to $3.00 | Up to $4.00 | Confirm exact rate with auditor at transfer date. |
| Greene County | $1.00 | Varies | Varies | Check auditor’s website for current permissive fee. |
| Miami County | $1.00 | Varies | Varies | Ask auditor or title company for exact fee. |
We Buy Houses For Cash, As-Is Anywhere in Dayton
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Capital Gains on Dayton Home Sales
Primary Residence — Section 121 Exclusion
- Own & use for 2 of the last 5 years.
- Exclude up to $250,000 gain ($500,000 married).
- One exclusion every 2 years; prorated exclusions possible for job/health/unforeseen events.
Rental Property — Depreciation & 1031 Exchanges
- Depreciation recapture taxed up to 25% federally.
- 1031 exchanges defer gains/recapture if reinvesting in like-kind property.
- Ohio taxes as ordinary income; SDIT may apply depending on school district.
State & School District Income Taxes
Ohio taxes capital gains as part of taxable income; Dayton SDIT depends on district: Dayton Public Schools uses traditional base, so capital gains may be included; surrounding districts like Oakwood, Kettering, and Beavercreek may vary.
Property Tax Timing & Credits
Taxes billed semiannually. Prorations credit buyer for seller’s portion. Homestead, Owner-Occupancy (2.5%), and Non-Business credits reduce prorations, not federal gain.
| Credit/Exemption | Who Qualifies | Effect | Impact at Closing |
|---|---|---|---|
| Homestead Exemption | 65+/disabled, income-based | Reduces taxable value (Montgomery County) | Lower bill → lower prorations |
| Owner-Occupancy (2.5%) | Primary residence | Reduces levies by 2.5% | Lower semiannual bill/prorations |
| Non-Business Credit | Non-business property | Reduces taxes on certain levies | Impacts prorations; eligibility varies |
Special Situations
Inherited Property
- Stepped-up basis reduces federal capital gains.
- Check property taxes or delinquent balances; settle at closing.
Divorce Sales
- Allocation doesn’t change total tax; each spouse calculates gain/exclusion based on ownership & use.
- Check use test if one spouse still occupies the home.
Foreign Sellers (FIRPTA)
- FIRPTA withholding may apply. Work with title company early for correct filings.
CAUV (Agricultural)
- Recapture charges may apply if use changes post-sale.
Documents & Forms Checklist
- DTE Form 100 — file at county auditor.
- Payoff/Lien letters
- Property tax status — check delinquencies, credits, next due date.
- Homestead/Owner-Occupancy docs for proration.
- Settlement statement showing fees/prorations.
- For rentals: depreciation schedules, receipts, 1031 docs.
Pricing Strategy
Reverse-engineer your net goal: start with target check, add costs (mortgage payoff, liens, conveyance, prorated taxes, title/closing), set list price. Factor repairs/credits if offering as-is cash sale.
| Line Item | Source | Ballpark in Dayton | Notes |
|---|---|---|---|
| Conveyance Fee | County/State | $1–$4 per $1,000 | Montgomery County max $4; verify exact total |
| Property Tax Proration | County Treasurer | Daily share | Depends on rate & closing date |
| Title/Settlement | Title/Attorney | Fixed + recording | Recording fees vary by county |
| Capital Gains | IRS/ODT | Case by case | Primary home vs rental; SDIT may apply |
| Repairs/Credits | Buyer negotiation | Varies | Factor in for “as-is” offers |
Local Resources
- Montgomery County Auditor – Real Property
- Montgomery County Treasurer
- Greene County Treasurer
- Miami County Treasurer
- Warren County Treasurer
- IRS – Capital Gains & Depreciation
- Ohio Dept. of Taxation
- Montgomery County Probate Court
- Check your SDIT via local school district: Dayton Public Schools, Kettering, Beavercreek, Centerville, Oakwood, Huber Heights, Springboro.
Step-By-Step Dayton Sale Tax Checklist
- Confirm property type: primary, rental, inherited, or farm (CAUV).
- Check tax status and liens.
- Confirm credits/exemptions: Homestead, Owner-Occupancy, Non-Business.
- Estimate conveyance fee with county auditor.
- Calculate federal/state capital gains and SDIT obligations.
- Prepare closing docs: payoff letters, DTE Form 100, settlement statement.
- Negotiate repairs/credits if selling as-is.
- Verify prorations for taxes, HOA, assessments.
- Confirm buyer financing & closing timeline.
- Execute sale and record deed with full tax compliance.
We Buy Houses For Cash, As-Is Anywhere in Dayton
Sell quickly without worrying about repairs, credits, or complex tax calculations. We handle everything so you can close fast and get cash in hand.
Final Thoughts
Whether selling in Oakwood, Kettering, Beavercreek, or Centerville, Dayton real estate taxes are manageable with careful planning. Understand conveyance fees, prorations, credits, federal/state capital gains, and SDIT. Use these tables, checklists, and local resources to maximize net proceeds and minimize surprises.
For sellers who want a fast, stress-free sale without handling tax calculations, repairs, or commissions, Proven House Buyers offers cash offers for homes anywhere in Dayton and surrounding suburbs. We handle prorations, paperwork, and closing so you can move forward confidently.